Fund managers have been penned in and pent up lately, pessimistic about world stock markets yet hopeful that investing conditions would improve someday.

Now, evidently, someday is here. A new survey shows that managers feel better about global markets than they have in almost six years. Three out of every four managers see rosier economies and healthier corporate profits a year from now. Accordingly, investors are more willing to take risk, and fittingly have embraced technology stocks, which promise high growth and high return.

Three cheers -- or is that jeers? Most fund managers fail to beat their relevant index benchmarks over a given period. Many were upbeat right up until they got a beating in 2008. They were paralyzed as the market tumbled to new lows in March, and hesitant to make a move as stocks rallied in the spring.

It's hard to blame managers -- except they're supposed to be the experts. Now they say the water's fine. Before you wade in deeper, remember Warren Buffett's line that when the economic tide goes out, you find out who's been swimming naked. The crash made plenty of investment pros blush. Now, even after the recent rally and a sense that the worst of the recession is over, many still need a swimsuit.

-- Jonathan Burton, assistant personal finance editor

SPECIAL FOCUS: IMPROVING YOUR PORTFOLIO

Bond indexes beat active managers

The debate over passive vs. active mutual-fund investing is seemingly endless, but a study released Thursday provides strong support for index tracking, at least in the fixed-income space. See FundWatch.

Concentrated portfolios are controversial but can reward over time

The best mutual funds often don't own many stocks. Focused funds -- portfolios with only a couple of dozen holdings -- are getting attention in a market where stock selection is more important than ever. Their concentrated strategy might be worth some extra risk for investors who know what to look for. See full story.

Using low-cost, indexed ETFs to build a core portfolio

With so many specialized exchange-traded funds tracking exotic sectors of the market, it's sometimes easy to forget that one of the most effective uses of ETFs is building a core portfolio with broadly diversified funds. See ETF Investing.

INVESTING NEWS & TRENDS

Fund managers unleash their inner bull

Investor optimism over the global economy reached the highest level in nearly six years in August, as money continues to pour into equities, according to the Banc of America Securities-Merrill Lynch August survey of global money managers. See full story.

Swiss-bank case could snare financial advisers

The fallout from an agreement to give U.S. tax authorities information on thousands of Americans with Swiss bank accounts is likely to hit financial advisers who enabled clients to hide money overseas in an attempt to evade taxes. See full story.

Hartford funds face up to market challenges

The mutual-fund arm of Hartford Financial Services Group was a quick success, garnering assets at a record pace. But like most asset managers, Hartford Mutual Funds' fortunes took a tumble when the market crashed last year. See full story.

Gold-demand slide points to better economy

Investment demand for gold has increased since a year ago but tapered off from the start of the year, pointing to healthier times for the overall economy, said the World Gold Council Wednesday in a report on second-quarter gold trends. See full story.

Pioneer of deep-value strategy still hunting for unloved bargains

When Max Heine founded the Mutual Shares Corporation in 1949, it's unlikely he foresaw how his $1 million investment trust would develop over the next 60 years. See FundWatch.

COMMENTARY

25 habits of predictably irrational 'nudgees'

"A good conspiracy is unprovable. I mean, if you can prove it, it means they screwed up somewhere along the line." That's Mel Gibson in the movie "Conspiracy Theory" in 1997. Lately, seems like lots of readers feel like Mel Gibson in "Conspiracy Theory," watching a real one here in the U.S. See Paul B. Farrell.

Mutual fund's reassuring promise comes at a high price

The mutual-fund industry keeps cooking up new products, knowing it can generate interest by offering one popular feature: certainty. See Chuck Jaffe.

Time for retirees to look to bonds

When it comes to investing, most retired Americans have it backwards. Instead of investing in bonds, which provide a return on capital, those seeking retirement-income security tend to invest in things that provide a guaranteed return of capital. Doing so could lower one's standard of living, especially when short-term interest rates fall. See Robert Powell.

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